Dec. 7 (Bloomberg) -- BHP Billiton Plc, Anglo American Plc
and Xstrata Plc’s Cerrejon coal mine will miss its output target
this year after rainstorms curbed production in Colombia.

Cerrejon will produce less than the 32.5 million metric
tons it targeted after rains prompted mine stoppages to ensure
the safety of workers, said the venture’s Chief Executive
Officer Leon Teicher. Output at Cerrejon, the world’s largest
open-pit coal mine for export, will be above 32 million tons, he
said. The mine will export 32 million tons of coal this year.

“Whenever there is rain we stop the mine,” Teicher, who’s
slated to step down this month, said in a telephone interview.
“It’s had a major impact on our production in October, November
and December, but we have been able to compensate.”

Rainfall, also hampering operations at mines owned by
Glencore International AG’s Prodeco group, Drummond Co. and
Itochu Corp., will limit the nation’s coal output through early
next month, National Federation of Coal Producers President
Jaime Olivella said today in a phone interview. Colombia is
South America’s largest supplier of coal.

Colombia will produce 75 million to 80 million metric tons
this year, below a government forecast for 85 million tons, said
Olivella. Rain is flooding mining pits, forcing trucks and
excavating equipment to operate more slowly and hampering some
coal transport between mines and ports, said Olivella.

Across Colombia, 101 people have died since September
because of floods, mudslides and storms.

December Rainfall

At Cerrejon, in northern Colombia, the number of days with
rainfall in December has exceeded the amount expected for the
whole month, Teicher said.

Last year, Cerrejon produced 31.5 million tons of coal and
exported about 31.3 million tons, said Teicher. Next year,
exports from Cerrejon to Latin America will likely surpass
shipments to North America for the first time, because of
growing demand from utilities in Chile and Brazil, he said.

“We’re about at the inflection point,” Teicher said.

In Chile, drought that limits hydroelectric production is
increasing demand from utilities, while Brazil is considering
new coal-fired plants, he said.

Cerrejon will increase production in 2013 as part of a $1.3
billion expansion plan approved this year. Output will rise to
34 million metric tons in 2013 and 37 million tons in 2014,
before reaching a target of 40 million tons in 2017.

Management is at the early stages of studying an expansion
to 60 million tons at the mine, which has enough coal resources
to produce even more, according to Teicher.

Colombia mainly produces thermal coal and also has mines
exporting metallurgical coal used for steel production. In the
mountainous provinces of central Colombia, flooding is slashing
production of metallurgical coal, according to the federation’s
Olivella. Coal output next year in Colombia will rise to 100
million tons as mines expand, he said.